definitely sentiment negative on Gold.
USA equity markets are touching all time highs as the resent reorganisation of indices to include growth stocks (like apple for example) reverse the resent slide and push the headline number back up. Nothing new there.
Economic data has been poor for the first QTR, and all major banking economists are slashing even further their Q1 GDP forecasts, rate rise expectations are moving from September 50/50 to December. Lower expectations, get a beat, keep momentum going....nothing new there.
Rates in USA saw big drops last night, partly because of more drops in economic data, lowering chances of interest rate rises by a data dependant fed, and as money rushes off the sidelines to chase and trade everything that's going up up up.
Even with USD and rates sliding, Gold and Pm's get no interest from the long side
Technically broken on the short term as it cracks right away from its 50DMA and leaves the round 1200 somewhere seemingly way up on the chart.
Despite the normal things that would move the commodity its getting no traction on just about anything that for the last decade would see it challenge to the upside.
Greece, zero premium there, market is convinced that the problem will go away after getting sucked in last time (no crisis as they got bailed out multiple times to avoid disruption) so no one taking any position there.......except me,,,,,,,,,,,,,,but clearly, that's a no gggooood
Falling rates in USA, usually it does well, nada % terms last night 2 to 1.9,,,big fall
Even Falling rate increase expectations in USA moving further away from June, nada Gold interest. Even main EU economy rates falling to rock bottom,,,,Nada
Apparently, oils resent surge / rebound/ despite continual and consecutive inventory builds in USA is because of a Geo political drama in Yemon, Golds participation in this nada.
Huge spikes in commodities prices like ore since China announcement of RRR cut, nada
Inflation data which has come in, in many cases significantly higher than expected by economists (they never get much right) but definitely huge month over month increases....nada..........even as commodities have another huge monthly bounce,,,,which are going to feed directly into actual inflation..............nada
Gold now hit a monthly low, liquidity has been high all month making it easy to sell gold buy equities which have all had huge recoveries and pops, so the shorts have been right to keep loading as nothing ATM is lending support or interest to Gold long side interest, and with a price break like that will all of the normal things that usual see rising trade, well that screams sentiment negative and will bring in even more shorts and sellers as she looks wounded
If she cant trade to the upside with all of the data on her side I think we have to prepare for a move to all of the forecasters targets which are lower in the short term.............
no ones interested on the Gold buy side,,,
so situation neeeegative......
View attachment 60320
which is a suck
4 meeeeee
GL
